Depending on what part of the real estate spectrum you’re on, one thing is for certain – more people are moving to the Phoenix metro area than ever before. According to this article by BiggerPockets, Scottsdale is 25th on a nation-wide list of highest rent per one bedroom and two bedroom. However, what makes this city so unique is the fact that rent is increasing year by year, contrary to the growing trend of expensive cities experiencing a decrease in rent per one bedroom and two bedroom.
Scottsdale isn’t the only Arizona city on the top 50 list – you can find Gilbert and Chandler, with 6.1% and 4.3% rental growth year by year. Even though this might sound exciting for real estate investors, many locals and aspiring community members will face the burden of increased urbanization and cost of living. Millennials now take up roughly 42% of homebuyers, with many of them resorting to moving back to the suburbs. Why? They are having children, looking to grow up in safe, family-centric environments. Arizona is primed exactly for this type of buyer, with brand new homes being build in various parts of town. Investors recognize this, and capitalize on Millennials that can’t afford to purchase the new home. This trend doesn’t only exist as a blip in a few numbers. Industry analysts have noticed the suburban trend as well, based on a wide range of anecdotal and statistical evidence.
Remember, rents are rising almost everywhere nationwide. If you live in one of the handful of larger cities where rents are slipping, start looking elsewhere. The U.S. is chock full of excellent markets to invest in. These markets may not be just around the corner from your home, but that doesn’t mean there are no opportunities. You may just have to look outside your own backyard to see them, maybe here in Arizona! Check out our page and join our VIP Buyers list if you’re interested in great real estate investments here in Arizona. We’d love to show you around!